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Exercise 12-3 Calculating Free Cash Flow [LO12-3] Apex Company prepared the statement of cash flows for the current year that is shown below: Apex Company
Exercise 12-3 Calculating Free Cash Flow [LO12-3]
Apex Company prepared the statement of cash flows for the current year that is shown below: |
Apex Company Statement of Cash FlowsIndirect Method | ||||
Operating activities: | ||||
Net income | $ | 41,000 | ||
Adjustments to convert net income to cash basis: | ||||
Depreciation | $ | 20,900 | ||
Increase in accounts receivable | (60,300) | |||
Increase in inventory | (26,200) | |||
Decrease in prepaid expenses | 10,300 | |||
Increase in accounts payable | 54,900 | |||
Decrease in accrued liabilities | (10,800) | |||
Increase in income taxes payable | 4,900 | (6,300) | ||
Net cash provided by operating activities | 34,700 | |||
Investing activities: | ||||
Proceeds from the sale of equipment | 15,700 | |||
Loan to Thomas Company | (40,700) | |||
Additions to plant and equipment | (120,300) | |||
Net cash used for investing activities | (145,300) | |||
Financing activities: | ||||
Increase in bonds payable | 89,300 | |||
Increase in common stock | 38,700 | |||
Cash dividends | (29,600) | |||
Net cash provided by financing activities | 98,400 | |||
Net decrease in cash | (12,200) | |||
Beginning cash balance | 28,100 | |||
Ending cash balance | $ | 15,900 | ||
Required: |
Compute Apex Companys free cash flow for the current year. (Negative amount should be indicated by a minus sign.) |
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